Chile | An optimistic central bank baseline scenario for 2016

Central bank adjusted its forecast for economic growth in 2016 from 2.5%-3.5% to 2.0%-3.0% with downward bias (BBVAe: 2% with downward bias). Also confirms at most two additional 25bp hikes in the MPR during next year (reaching to 4.0%). In our view, would be a prolonged period with the rate at 3.5% before the first hike.

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